New survey puts the spotlight firmly on SMEs

Small businesses say things are looking up and expect to lift investment and hire more staff in the coming year, according to the new Business Micro Scope report.

Small businesses say things are looking up and expect to lift investment and hire
more staff in the coming year, according to the new Business
Micro Scope report.

ANZ’s Business Micro Scope survey is a new
quarterly indicator for small businesses across New Zealand. It surveys 250 firms, comprising micro (up to four staff) and
small businesses (up to 20 staff). The sample is taken from
the existing National Bank Business Outlook Survey, which
covers micro up to large businesses.

The first survey, for the
quarter to March 31, found small firms are positive
about the outlook, though business confidence remains
fragile. A net 28 percent of small firms are optimistic
about New Zealand’s economic prospects over the next year,
up 9 points on last quarter. A net 30 percent are
optimistic about the prospects for their own
business.

Investment intentions remain strong, with a net
11 per cent of small firms expecting to increase investment
– the fourth consecutive quarter that small firms have
posted a double-digit figure. A net balance of 5 percent of
firms expect to increase staff.

Low sales turnover was flagged as the biggest challenge in the current economy.

ANZ’s managing director, business banking, Fred Ohlsson, said: “It’s encouraging
to hear small businesses telling us they are upbeat about
profitability, and expect to invest and take on more staff.
This reflects a broader confidence about their prospects.
Though tempered with concerns about turnover, this cautious
optimism bodes well for the wider economy.

He said SMEs with one to 20 staff were the "lifeblood of our economy".

"Yet until now there has been little research
focused on how they are faring."